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Here's Why PRA Group (PRAA) is a Strong Momentum Stock
PRA PRA (US:PRAA) ZACKSยท2025-08-13 14:51

Core Insights - Zacks Premium offers tools to enhance investor confidence and market engagement through daily updates, research reports, and stock screens [1] - The Zacks Style Scores provide a framework for evaluating stocks based on value, growth, and momentum, aiding in identifying securities likely to outperform the market [2] Zacks Style Scores Overview - Stocks are rated from A to F based on their value, growth, and momentum characteristics, with A indicating the highest potential for outperformance [3] - The Value Score focuses on identifying undervalued stocks using financial ratios like P/E and Price/Sales [4] - The Growth Score assesses a company's financial health and future growth potential through earnings and sales projections [5] - The Momentum Score identifies stocks with favorable price trends and earnings outlooks, helping investors capitalize on market movements [6] Integration with Zacks Rank - The Zacks Rank utilizes earnings estimate revisions to simplify portfolio building, with 1 (Strong Buy) stocks historically yielding a +23.75% average annual return since 1988 [7][8] - To optimize returns, investors should target stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B, while also considering earnings outlooks [9][10] Company Spotlight: PRA Group (PRAA) - PRA Group is a global financial services company with a Zacks Rank of 3 (Hold) and a VGM Score of A, indicating solid performance potential [11] - The company has seen a 5% increase in shares over the past four weeks, with two analysts raising earnings estimates for fiscal 2025 [12] - The Zacks Consensus Estimate for PRAA has risen by $0.72 to $2.11 per share, alongside an average earnings surprise of +11.2%, making it a candidate for investor consideration [12]